American banks reacting to Italy

American bank credit default swaps are soaring in response to Italian contagion fears. They have previously released details about their individual exposures to Italian sovereign and/or corporate or related debt which range from over $6 billion in JP Morgan’s case …

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Antitrust Investigation into CDS market begins

The European Commission is investigating two separate antitrust cases concerning the credit default swap markets. According to the official press release:

In the first case, the Commission will examine whether 16 investment banks and Markit, the leading provider of

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Weekly: Commerzbank CDS active as shareholders fret dilution

Commerzbank, perhaps unsurprisingly, saw increased volume for the week ended April 22, 2011, after announcing plans to pay back €14.3 billion of €16.2 billion in German state aid it received during the credit crisis in 2009 in 2011 and …

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DB reports increased demand for risk-mitigating solutions

Deutsche Bank reported first quarter 2011 financial results including slightly lower trading revenues in its fixed income department despite what the bank called a “generally favorably market environment.” The one exception was “risk-mitigating solutions” in emerging markets which saw increased …

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ISDA releases new Determinations Committee

The International Swaps and Derivatives Association, Inc. (ISDA) recently issued a press release announcing the current year’s members for the 5 regional determinations committee (DC). A DC is used to vote on the occurrence of a credit event, whether to …

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Honeywell joins list of companies pricing loans with CDS

Honeywell International recently filed an 8-K statement with the SEC informing investors of the details of a new 5-year $2.8 billion credit line with several banks including Citibank, JP Morgan Chase, Bank of America, Barclays Bank, Deutsche Bank, Goldman Sachs, …

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First CDS trades under new regulations

The first US-dollar denominated credit default swap trades that conform to new regulations being implemented under the new Dodd-Frank Act on TradeWeb earlier this month.

As mentioned in the FT,

Under Dodd -[F]rank, clearable derivatives are required to

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Weekly: Swaps of Steel

Steelmaker ArcelorMittal saw a record amount of 342 trades covering $1.4 billion in gross notional value for the week ended February 11, 2011 making it the tenth most active credit default swap. The world’s largest steel company has not seen …

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Commerzbank CDS reaches new record high

It has not even been 2 weeks into the new year, and yet another bank has experienced an enormous increase in its traded credit risk.

Commerzbank has been at the center of attention the past couple weeks trading at the …

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Mezzanine class of CMBX sees interest

Credit default swap indices on commercial mortgage backed securities (CMBS) were one of the more active CDS indices on a percentage basis over the last month of 2010. The CMBX CMBS index – particularly the AM (mezzanine) class index was …

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